The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning
With their announcement on December 8, 1997, of their proposed merger, the CEOs of Union Bank of Switzerland and Swiss Bank Corporation must prepare a plan of integration of the two firms. This case presents the press release of the announcement and relates the reaction of investors and journalists. The case also presents a framework for setting the strategy of post-merger integration and summarizes the integration task before the executives. The tasks for the students include: 1. Assess the public communication of this deal. The public announcement launches the integration effort and sets a tone that can help or hinder the subsequent combination. 2. Survey the integration planning process. The executives of the two firms were committed to having a detailed integration plan in place before the consummation of the deal--this is consistent with current thinking about the desirability of avoiding a slow integration. Thus, the case is an illustration of the kinds of issues that must be resolved quickly. 3. Describe and evaluate the integration strategy of the new firm. The case surveys the process of integration planning between the announcement and consummation dates of the merger and outlines the approaches in the various business units. The student must consider the influence of various strategic issues including the balance of autonomy versus absorption, relatedness, and control versus consultation (these are described in the case.) The (A) case in the series describes the proposed terms of merger and invites students to value the benefits of the deal and assess the strategic motives. The (C) case summarizes the integration effort and the economic results over the five years following the transaction. It is recommended that the instructor distribute the (A) case for advance preparation by students and hold the (B) and (C) cases for discussion after the (A) case.
Swot Analysis of "The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning" written by Robert F. Bruner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Integration Announcement facing as an external strategic factors. Some of the topics covered in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study are - Strategic Management Strategies, Financial management, Mergers & acquisitions, Strategic planning and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning casestudy better are - – challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, technology disruption,
increasing commodity prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Integration Announcement, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Integration Announcement operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning can be done for the following purposes –
1. Strategic planning using facts provided in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study
2. Improving business portfolio management of Integration Announcement
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Integration Announcement
Strengths The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Integration Announcement in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Harvard Business Review case study are -
Training and development
– Integration Announcement has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Integration Announcement digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Integration Announcement has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Integration Announcement in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Finance & Accounting industry
– The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning firm has clearly differentiated products in the market place. This has enabled Integration Announcement to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Integration Announcement to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Integration Announcement has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Integration Announcement are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to recruit top talent
– Integration Announcement is one of the leading recruiters in the industry. Managers in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Low bargaining power of suppliers
– Suppliers of Integration Announcement in the sector have low bargaining power. The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Integration Announcement to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Finance & Accounting field
– Integration Announcement is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Integration Announcement in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Integration Announcement is present in almost all the verticals within the industry. This has provided firm in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Highly skilled collaborators
– Integration Announcement has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Integration Announcement supply chain. Even after few cautionary changes mentioned in the HBR case study - The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Integration Announcement vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Integration Announcement has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– It come across in the case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning can leverage the sales team experience to cultivate customer relationships as Integration Announcement is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, is just above the industry average. Integration Announcement needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Products dominated business model
– Even though Integration Announcement has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Integration Announcement has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, firm in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Integration Announcement 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner suggests that, Integration Announcement is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Integration Announcement has relatively successful track record of launching new products.
Lack of clear differentiation of Integration Announcement products
– To increase the profitability and margins on the products, Integration Announcement needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Integration Announcement, firm in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are -
Using analytics as competitive advantage
– Integration Announcement has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Integration Announcement to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Integration Announcement to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Integration Announcement can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Integration Announcement can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Integration Announcement can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Integration Announcement in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Integration Announcement to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Integration Announcement to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Integration Announcement can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Leveraging digital technologies
– Integration Announcement can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Integration Announcement can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Integration Announcement can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Creating value in data economy
– The success of analytics program of Integration Announcement has opened avenues for new revenue streams for the organization in the industry. This can help Integration Announcement to build a more holistic ecosystem as suggested in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning case study. Integration Announcement can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Integration Announcement to increase its market reach. Integration Announcement will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Building a culture of innovation
– managers at Integration Announcement can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Threats The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Integration Announcement can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Integration Announcement needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Integration Announcement can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Integration Announcement demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Integration Announcement.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning, Integration Announcement may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Increasing wage structure of Integration Announcement
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Integration Announcement.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Integration Announcement has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Integration Announcement needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Integration Announcement with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Integration Announcement in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Integration Announcement needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Integration Announcement can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Weighted SWOT Analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Integration Announcement needs to make to build a sustainable competitive advantage.
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